Energy Market Update 20/01/2026

Welcome to our weekly energy market update, where we share the latest trends, shifts, and key developments impacting the energy sector. Whether it’s fluctuations in oil and gas prices, changes in renewable energy policies, or updates on energy infrastructure projects, we’re here to help you stay informed. Join us as we break down the most important factors influencing the market this week, and explore what these changes could mean for your business.

Current Market Drivers:

📉 EU storage levels have fallen below 50% full, and ICIS analyst forecast that storage across Europe could fall to 28% by the end of the winter period under “normal conditions,” suggesting that any further cold snaps could drive withdrawals higher, increasing buying pressure over the summer.

⚡ Ongoing European renewable buildout continues to face challenges, as market saturation effects lead to lower capture prices for grid-scale producers and rising curtailment due to limited storage and system flexibility.

🌍 Several European nations and the UK face the threat of an additional 10% tariff from Trump after they rejected his plan to acquire Greenland and stationed military personnel in the region, creating broader macroeconomic uncertainty as the EU threatens to retaliate in kind.

📈 UK Jan-26 import volumes are up 177% year-on-year, and EU imports are up 87%, as stable supply and muted Asian demand, due to revised warmer temperatures in the region alleviate competition.

🏭 ICIS is projecting that European power demand growth is expected to fall short of forecasts with only 1.2% growth estimated in 2026, reflecting persistent economic uncertainty and softer industrial activity.

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